Flood reconstruction bill to be US$4.78bil

By the Editorial Team · Sunday, September 13, 2026

Nepal has estimated that rebuilding after last month’s catastrophic floods caused by a glacial collapse will cost about US$4.78 billion, with immediate recovery efforts requiring US$7.67 million and longer-term reconstruction making up the bulk of the budget. The disaster, which killed over 1,400 people and left thousands missing, has prompted Nepal’s Prime Minister to seek global attention on climate change's role at the United Nations General Assembly, as the country grapples with ongoing rescue operations and massive infrastructure damage.

The government of Nepal has projected that the cost of rebuilding after last month’s devastating floods triggered by a glacial collapse will reach approximately US$4.78 billion (RM19.5 billion), according to the country’s foreign ministry. The disaster, which occurred on August 26 near the China-Nepal border, resulted in a tsunami-like flood that has claimed more than 1,400 lives and left some 5,600 people missing.

Nepal’s Prime Minister Balendra Shah has pledged to raise awareness about the disaster and its links to climate change at the upcoming United Nations General Assembly, marking his first foreign visit as head of state. Foreign Secretary Amrit Bahadur Rai said Shah aims to draw global attention to the repeated loss of life and property Nepal has suffered due to climate-related disasters.

The reconstruction budget is divided into short- and long-term needs. Lok Bahadur Chhetri, a spokesman for the foreign ministry, stated that around US$7.67 million (RM234.6 million) will be required for immediate recovery efforts over the next six months. The remaining US$4.71 billion (RM19.2 billion) is earmarked for longer-term rebuilding initiatives to restore infrastructure and support affected communities.

Nepal, a mountainous country of roughly 30 million people, contributes minimally to global greenhouse gas emissions in comparison to industrialized nations. While the precise cause of the glacial collapse remains unclear, scientists note that climate change is accelerating glacier melt worldwide, particularly in the Himalayas, the world’s highest mountain range, heightening the risk of such catastrophic events.

A comprehensive post-disaster needs assessment is underway to gauge the full extent of the damage and the resources required for recovery, Chhetri added. The United Nations released a preliminary assessment estimating damage to buildings alone at US$158 million (RM642.8 million), stressing that overall losses—including damaged roadways, bridges, agricultural land, and humanitarian costs—are likely significantly higher.

Rescue operations continue amid challenging conditions. Efforts to retrieve hundreds of missing workers from hydropower tunnels filled with freezing mud remain ongoing. Authorities have confirmed three survivors found days after the flood, but no further survivors have been located since the rescue of a Chinese man nearly a week ago.

The United Nations has launched a US$50 million (RM203.4 million) appeal to assist more than 84,000 affected individuals. While search and rescue activities persist, the focus is gradually shifting towards relief and recovery efforts.

According to Nepal’s disaster agency, 1,385 bodies have been recovered so far, with approximately 5,130 people still unaccounted for. In China, the disaster's impact included 43 deaths and 519 people missing. The combined toll across both countries stands at 1,428 dead and over 5,649 missing, which includes around 800 foreign nationals, comprising tourists and pilgrims caught in the disaster.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.